Maruti Continues to Witness High Demand for Non-SUV Models in Rural Markets

Maruti continues to see high demand for non-SUV models in the rural markets. The carmaker has expanded its SUV lineup by launching three new models in the last 12 months. The launch is considered a significant move from Maruti to amplify its future growth, particularly in urban markets. While the urban markets have helped the carmaker sell a high number of high-riding vehicles, the rural market is dominated by its non-SUV models.

Between April 2023 and October 2023, Maruti Suzuki sold 2.21 lakh hatchback cars, sedans, and MPVs while its sales for SUV models stood at 81,500 units, indicating 11% growth in rural and 8% in urban markets compared to corresponding months last year.

The demand for non-SUV models in rural markets is driven by several factors, including the low cost of entry-level cars and better fuel economy. Another reason for such a big sale in India is that the carmaker doesn’t have diesel car models in its SUV portfolio. Hyundai, Kia, and MG Motor have premium diesel-powered cars. However, the trend may alter because Maruti’s rural market share in the small car segment fell to 43% from 48% in the first two quarters compared to last year.

With evolving emission norms making diesel cars even more expensive, car buyers are likely to opt for petrol, CNG, electric, and biogas cars which may benefit Maruti Suzuki by increasing its sales figure, especially for the SUV segment.